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Moustapha Diakhate, age 46, of Stamford, pleaded guilty on Wednesday, Jan. 26, one count of wire fraud and one count of making an illegal monetary transaction, according to an announcement from the United States Attorney’s Office for the District of Connecticut.
Diakhate provided Citibank and M&T Bank with false, fraudulent information during a PPP loan application to receive loans for six small businesses entities, the US Attorney's Office said.
He received more than $4 million in relief funds guaranteed by the US Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, according to the announcement.
The US Attorney's Office said Diakhate used some of the funds for "various personal expenses, including to pay off a loan he had been provided to purchase of a 2010 Porsche Panamera Turbo, and to purchase both a Mercedes and BMW."
He also bought a $50,000 certificate of deposit with PPP funds and distributed the funds to individuals unrelated to his business entities, the announcement reads.
Diakhate was arrested on May 7, the US Attorney's Office reported.
He was released on a $450,000 bond pending sentencing and is scheduled to be sentenced on April 21, the report said.
The case was investigated by the following agencies:
- The Small Business Administration Office of Inspector General
- Federal Bureau of Investigation
- Internal Revenue Service – Criminal Investigation
Information about attempted fraud related to COVID-19 can be submitted by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or through an NCDF Web Complaint Form.
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